The U.S. labor market delivered a stronger-than-anticipated performance in May, with employers adding jobs at a pace well above economists’ expectations, according to data released Friday by the Department of Labor.
Nonfarm payrolls increased by 172,000 positions during the month, following a revised gain of 179,000 jobs in April. The latest reading significantly exceeded market forecasts, which had called for the creation of 85,000 jobs. April’s initial estimate had been reported at 115,000 jobs before being revised higher.
Hiring was particularly robust in the leisure and hospitality sector, healthcare, and local government, helping to offset weakness elsewhere in the economy. Employment in financial activities, however, declined during the month.
Meanwhile, the national unemployment rate held steady at 4.3% in May, matching both the previous month’s reading and economists’ expectations, suggesting that labor market conditions remain relatively stable despite broader economic uncertainties.